Square Enix Revises Earnings Forecasts For Major Loss
Losses attributed in part to cancellations as company tightens its selection standards.
Square Enix announced revised earnings expectations today. The company says that it will incur a net loss of 12,000 million yen for the previous fiscal year. Its previous forecast from February 3 listed a modest net profit of 1,000 million yen.
The revision is due to extraordinary losses, in part from a "tightened selection standard" for games. This will result in 4.5 billion yen in losses related to development cancellations. A press release announcing the revision did not share specifics beyond this.
The company will also incur a "loss on disaster" of approximately 0.6 billion yen related to the Tohoku earthquake. This is for closures and restoration of amusement facilities.
As these are all extraordinary losses, revisions to the company's forecasts for its other areas weren't as extreme. Sales forecasts are down from the original 130,000 million yen to 125,000 yen. Operating income expectations are down from the forecast 8,000 million yen to 7,300 million yen.
You can read Square Enix's full revision statement here (English, PDF).